I give a rather elaborate explanation for my bearish bais on this company in my reply to TMFDeej's green thumb pick.

No disrespect intended toward TMFDeej on this. He is actually one of my favorite Fools. I just happen to disagree with him on this one.

While he may be correct that the reinstatement of the preferred dividends probably foreshadows an *intention* on the part of management and the board to reinstate the common dividends at some point in the near future, that decision won't necessarily drive value through the share price. Payment of dividends by itself doesn't make the business inherently more valueable.

Also, the *intention* of reinstating the dividend is predicated on the business growth financially allowing them to reach that point. I have strong reasons for doubting that they will reach that point which I elaborate in more detail in my response to TMFDeej's pitch.

Basically, these are all high end luxury hotels. The hotel business by itself is very cyclical and the luxury hotel business even more so. I tend to believe that high end travel is approaching a cycle peak because I'm bearish on the world economy. If others are of the belief that the recovery is just gaining traction and is about to take off, then that could justify a different view. I think it's a much more speculative view to have a strong conviction in a robust recovery at this point given the numerous and significant near term challenges ahead, not the least of which is the ratcheting price of oil which travel decisions are closely tied to. I think it's safer to expect a chug along economy or even a downturn at this point and the chug along scenario isn't going to be sufficient to reinstate the common dividend or drive further growth in the share price.

That's my opinion on this one, but I'll admit that my research has been pretty superficial up to this point. I've already seen enough to raise my skepticism level a great deal.

Sing it with me folks... Attack....of the killer crap stocks! ATTACK.....of the killer crap stocks! Strategic Hotels & Resorts has absolutely no business rallying over 500% off its lows given a continuing history of losses which should extend well into 2013 if they even make it that far. Assets aside, they have a mountain of debt, 1.7B which would obliterate almost all liquidation value this company has. I get a kick how the highest analyst price target right now is $2! It's $2 for a reason folks...this isn't worth the paper it's printed on and still remains one of my highest bankruptcy candidates over the next 5 years.

The income lost due to reduced traveling has been priced in, a lot of the last loss was due to depreciation and anticipated declines in travel. It's also trading around it's tangible BV. Although I'm not positive, I think it's a good candidate for fast recovery, especially if the earnings meet expectations.